In a previous post, I commented on the difficulties faced by the Calgary CBD (downtown), with its huge office vacancies resulting from the mid-decade oil bust, along with the rise of remote and hybrid working accelerated by the pandemic.
Calgary (metropolitan area population 1.4 million) has built the largest post-World War II CBD in North America, reaching slightly more office space than the Philadelphia, with the sixth largest CBD in the United States, in a metropolitan area with four times the population.
Calgary’s Shrinking CBD
Despite its inventory of newer buildings and general attractiveness, the Calgary CBD has lost a substantial amount of its employment, starting with a virtual depression in its oil sands headquarters. Then, starting during the pandemic, fewer people commuted downtown, with the substantial increase in as from remote and hybrid work.
The Calgary CBD vacancy numbers are depressing for those of us who enjoy vibrant downtowns. A report to the City Council Executive Committee from the Planning and Development Services Department notes that since 2015, CBD property values have dropped $16.4 billion. This is a reduction in office building value of 67%. This has reduced city revenues and the lost tax base has been redistributed to commercial and residential properties outside the CBD.
The Downtown Calgary Incentive Program
Things are so desperate that the City has adopted an aggressive program to reduce downtown’s office footprint. With 14 million…
